Chinese nickel producer Tsingshan Holding Group has announced plans to invest $800 million to expand its steel operations in Zimbabwe. According to Reuters, the funds will be channelled into the Dinson Iron and Steel Company facility in Manhize, with the goal of doubling annual carbon steel output from 600,000 to 1.2 million metric tonnes.
The expansion includes the construction of a new blast furnace and supporting infrastructure. According to The Zimbabwe Mail, production at the plant, which began operations in July 2024, has already reached 60% capacity, with steel bar production scheduled to commence by April 2025. Output is expected to climb to 75% capacity by mid-2025.
Energy security has been built into the project’s design. According to Reuters, the facility operates a 50-megawatt thermal power plant that uses furnace gas to meet around 20% of its energy needs, helping to offset reliance on Zimbabwe’s fragile national grid.
The investment is also expected to boost local employment and supply chains. According to Bulawayo24, the expansion will create around 500 additional jobs, bringing the workforce to 2,700, with long-term plans to scale up to 10,000 direct jobs. Government officials say the move will also help Zimbabwe reduce its annual $1 billion steel import bill.
Industry analysts note that Tsingshan’s market-driven approach, assessing regional demand before fully rolling out production, reflects a cautious but strategic expansion. According to Reuters, the investment positions Zimbabwe as a potential steel hub for Southern Africa while strengthening its industrial base and reducing import dependency.
